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Market Report (January)

The real estate markets in major Pakistani cities started 2017 in a mixed state, according to an analysis of property price data. Lahore and Gujranwala remained mostly stable, while Karachi saw sharp rises in some areas. Islamabad's market continued to struggle due to tax changes from the previous year, though some localities like Bahria Town experienced growth. The overall market is still recovering from the impacts of recent tax policies but signs point to improved activity later in the year as major infrastructure projects take shape and the effects of tax amnesty schemes emerge.

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Shahrukh Mian
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24 views

Market Report (January)

The real estate markets in major Pakistani cities started 2017 in a mixed state, according to an analysis of property price data. Lahore and Gujranwala remained mostly stable, while Karachi saw sharp rises in some areas. Islamabad's market continued to struggle due to tax changes from the previous year, though some localities like Bahria Town experienced growth. The overall market is still recovering from the impacts of recent tax policies but signs point to improved activity later in the year as major infrastructure projects take shape and the effects of tax amnesty schemes emerge.

Uploaded by

Shahrukh Mian
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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2017 kicks off to a mixed start

The current year started with a mixed bag of trends when it comes to the property
sector in Pakistan. January saw unique tendencies in every city, and we are here to
report on all of them.
Zameen.coms property price data for the month showed highs for some places,
and lows for others. Some markets remained stable, while others saw fluctuations.
The city of Lahore either remained stable or saw some growth. Karachis market
experienced jumps while Islamabad experienced slumps. Gujranwala, like Lahore,
remained stable for most part.
LAHORE
The start of the year had nothing too grand to report on for Lahore. Localities that
are saturated remained stable (think DHA Lahore Phases I to VI and Wapda Town).
Areas that have room for growth such as DHA Lahore Phases VII to IX saw an
upward trend. Despite the Lahore Ring Road issue, Bahria Town has continued to
hang on to its stability. In the same vein, despite its litigation issues, LDA Avenue I
experienced moderate growth.
The hot choice for investors is Bahria Orchard which saw growth in the prices of
both 10-marla and 1-kanal plots at 1.38% and 1.82% respectively. The prices are
expected to continue on this upward trajectory in the future.
ISLAMABAD
The capital citys real estate market does not seem to be doing all too well. Most
localities are still reeling from the tax scheme that was implemented last year.
Bahria Town is the exception, with a growth of 4.95% for 1-kanal plots, and a sharp
rise for 10-marla plots with 6.10%. Gulberg Residencia also saw some positive signs
with 4.82% growth in the prices of 1-kanal plots, and 6.08% growth for 10-marla
plots.
Sector F-11, DHA Islamabad, Sector E-11 and Sector B-17 all registered moderate
drops in 10-marla plot prices. DHA Islamabad and Sector E-11 registered moderate
drops for even 1-kanal plots, while Sector B-17 and Sector F-11 remained stable.
KARACHI
Karachi seems to be doing well in 2017. Both Defence City Karachi and Bahria Town
Karachi saw sharp rises for plots that were 500-yards 2 and 250- yards2 plots. Both
localities have seen a marked increased in buying and selling.
Despite its saturation levels Gulshan-e-Iqbal seems to be doing well for both 10-
marla and 1-kanal plots. DHA on the other hand, only managed to see prices stay
stable.
GUJRANWALA
While Gujranwala has started to capture investor attention, in January its property
prices remained largely stable. DHA Gujranwala saw moderate growth in the prices
of 1-kanal plot files, whereas stability was the order of day for 10-marla plot files.
Prices dipped slightly in Citi Housing Society but largely stayed in the stable margin.
Master City experienced stability as well.
DC Colony experienced drops, although they were largely moderate. Property is
priced more in this society as compared to other options that are on offer, which is
the reason that it is experiencing moderate drops.

FINAL ANALYSIS
The real estate market is still reeling from the tax regime that hit last year. Although
things are changing, the change is coming slowly. This is the main reason that
Lahore and Gujranwala have both stayed stable although we do expect these
trends to change later in the year.
Islamabad is the one city that has not shown any positive signs. However, that is
not to say that the market does not hold potential anymore. There are some
important developments happening in Islamabad. The market may seem stagnant
but once projects, such as the Islamabad Expressway and the New Islamabad
Airport near completion, activity should pick up pace again, said Zameen.com CEO
Zeeshan Ali Khan.
Both DCK and BTK are setting the Karachi market on fire, and this sharp growth has
truly made a mark.
We believe that market trends will pick up pace in the months to come. We are
expecting the market activity to pick up soon. While the tax scheme did take its toll
last year, the amnesty scheme seems to be helping the market come back to its
original state. The situation will improve in the days to come, Khan added.

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